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Cash must be circulated
]
It was a lazy day in a hot town. The sun is high, the streets are deserted, and everyone is heavily in debt and living on credit. At this time, a wealthy tourist came from out of town. He entered a hotel, took out a dollar bill and put it on the counter. He said he wanted to look at the rooms first and choose a suitable one to spend the night.
Just as the man went upstairs, the shopkeeper grabbed the dollar bill and ran to the butcher next door to pay for the meat he owed.
The butcher got the yuan and crossed the road to pay off the pig farmer’s pig capital.
The pig farmer took the yuan and paid the feed he owed.
The man who sells feed took the yuan and hurriedly paid off the money he hired for the prostitute (the economy was in recession, and the local service industry had to provide credit services).
With the yuan in hand, the prostitute rushed to the hotel to pay the money she owed.
The hotel owner hurriedly put the dollar on the counter to avoid suspicion when the tourists came downstairs.
At this time, the man was coming downstairs, picked up the yuan, and claimed that no one was satisfied. He put the money in his pocket and left.
On this day, no one produced anything, and no one got anything, but the debts of the whole town were cleared and everyone was happy.
[Financial Principles] What does this story tell us
? Cash must be circulated to generate value, and there will always be speculation in the economy.
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